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What is Paypal's Fee Structure

Paypal is growing in use and popularity, and thus the question must be asked: What is Paypal's fee structure?

Before that question is answered let's take a look at some of the basics of Paypal:

What is Paypal?
PayPal is an account-based system that lets anyone with an email address securely send and receive online payments using their credit card or bank account. It is a brilliant way of electronically paying for things! Genius.

Who Uses Paypal?
Most people are familiar with it through online auction sites such as eBay. It is the most popular way to electronically pay for eBay auctions. However, this is not the only use for it. Paypal is becoming a cheap way for merchants to accept credit cards on their on-line storefronts instead of using a traditional payment gateway as well. So, you will see many websites that use Paypal as their method of receiving payment for goods and services.

What Does it Cost?
With Paypal growing in popularity, and because you see it everywhere online, it is important to know what it is going to cost you to use. In general, for the one doing the purchasing it is free, and for the one doing the selling there is a small fee. The fee structure for the U.S. is as follows:

Sending Payments (excluding Mass Payments): Free

Sending Payments through Mass Payments: 2% up to a maximum of $1.00 USD per recipient.

Receiving Balance/Bank Funded Payments into a Personal Account: Free

Receiving Card Funded Payments into a Personal Account (limited to 5 per 12 month period): 4.9% + $0.30 USD for domestic payments, 5.9% + $0.30 USD for cross border payments

Receiving Payments into a Business or Premier Account (applies to all payments)
Standard rates:
2.9% + $0.30 USD for domestic payments.
3.9% + $0.30 USD for cross border payments.
Merchant rates (based on monthly transaction volume and a one-time application):
1.9% - 2.5% + $0.30 USD for domestic payments.
2.9% - 3.5% + $0.30 USD for cross border payments.

Withdrawing your Balance: Free to transfer to a bank, $1.50 USD for a physical check, $1.00 USD for a PayPal ATM/Debit Card cash withdraw from an ATM, $3.00 USD for a PayPal ATM/Debit Card cash withdraw from a bank that requires a signature.
( Above fees include the Exchange Rate and Fee if you are converting your Balance to a different currency.)

Chargeback Fee: $10.00 USD per Chargeback filed unless you are protected by the Seller Protection Policy.

Exchange Rate and Fee: The exchange rate is the retail foreign exchange rate as determined by PayPal at the time a transaction is completed. The exchange rate is adjusted regularly, based on market conditions, and includes a 2.5% Fee above the rate at which PayPal obtains foreign currency. The 2.5% Fee is retained by PayPal.

Expanded Use Fee: $1.95 USD
This amount will be refunded when you successfully complete your expanded use enrollment and send your next payment.

Records Request Fee: $10.00 USD (per item)
You will not be charged you for records requested in connection with your good faith assertion of an error in your Account.

Knowing the costs associated with using Paypal will help you determine whether or not it is going to be a good program for your online storefront, or online business. Many have found that it is a better way of tracking purchases, faster way of receiving payments, and much more convenient for them and their customers, as well as a less expensive method of payment, with more flexibility.

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